Money

Sumitomo buys stake in Isaac Plains

The coal stockpile at the Isaac Plains Mine, near Moranbah.
The coal stockpile at the Isaac Plains Mine, near Moranbah. Contributed

JAPANESE giant Sumitomo has swung in to give Aquila Resources $430 million for its share of the Isaac Plains mine near Moranbah.

In the same breath, it has taken a 50% stake in most of Aquila's exploration sites across the state.

These purchases are part of a greater plan for the Japanese firm - which operates in 65 countries - to pick up projects in Central Queensland.

The deal was announced to the ASX on Tuesday morning.

Although subject to conditions, the parallel deal means Sumitomo will be able to cherry-pick which exploration sites it wants a significant share in.

Once formalised, these partnerships will allow Aquila to funnel its money towards a sprawling iron ore project in Western Australia while creating a powerful joint venture to develop more sites in the Bowen Basin.

Aquila will no longer hold any stake in Isaac Plains open-cut mine - it will now be jointly owned by Sumitomo and Brazilian miner Vale.

However that deal will still hinge on Vale giving its permission for Sumitomo to buy, and a further thumbs-up from the Foreign Investment Review Board.

According to Aquila's ASX announcement: "The sale (of Isaac Plains) follows a number of approaches with respect to Aquila's interest in Isaac Plains, with the Sumitomo offer ultimately providing the most compelling value proposition."

It was a busy morning for the Perth-based Aquila.

On top of its other news, it reaffirmed a plan to offload the Washpool Hard Coking Coal project near Blackwater, likely to fall into the hands of an Indian consortium.

Sumitomo for its part is expected to keep quiet on its buying spree, with a spokesman confirming the deals but declining to elaborate.

The company already has a stake in a wide selection of Queensland projects, some of them particularly high profile.

It has four joint ventures with Xstrata Coal including Oaky Creek, Newlands, Rolleston and a foundation piece of the Wandoan project.

Sumitomo also owns part of Hail Creek with Rio Tinto.

The company spokesman said investing in coal was "a core strategy of our company".

"It's just natural for us to be targeting this area (the Bowen Basin)."

Topics:  isaac plains mine mining moranbah


Stay Connected

Update your news preferences and get the latest news delivered to your inbox.

Violent burglary: Two men in Polair chase, officer assaulted

Police officer seriously assaulted, residents threatened with guns

Teacher sending kids home sick, dizzy and with heat stroke

An Ipswich teacher wants the state government to fund air-conditioning in Ipswich schools.

TEACHER and mum petitions state government for air-conditioning

UPDATE: Police locate missing Ipswich bushwalker

Bushwalking Season  - User Contributed

He was located safe and well late yesterday.

Local Partners

The true cause of the Oscars bungle

THE Oscars have ended with a moment that left everyone speechless — but not in a way anyone expected.

HUGE OSCARS FAIL: Wrong film handed Best Picture award

Presenter Warren Beatty shows the envelope with the actual winner for best picture as host Jimmy Kimmel, left, looks on at the Oscars on Sunday, Feb. 26, 2017, at the Dolby Theatre in Los Angeles. The winner was originally announced as La La Land, but was later corrected to Moonlight.

IN A monumental stuff-up, La La Land incorrectly named Best Picture.

Blue Heelers' Ditch Davey joins 800 Words cast

Ditch Davey joins the cast of 800 Words as Terry, the younger brother of George, played by Erik Thomson.

George Turner's brother, Terry, arrives to Weld with a 'few demons'

Oscars winners 2017: Full list of Academy Award winners

Viola Davis accepts the award for best actress in a supporting role for Fences at the Oscars on Sunday, Feb. 26, 2017, at the Dolby Theatre in Los Angeles.

WHO won Oscars this year? Here’s a full list of every winner.

Why can’t Nicole Kidman clap properly?

Nicole Kidman's style of clapping has puzzled Oscars viewers.

FOR some reason, it seems Nicole doesn’t really know how to clap.

Muslim actor makes Oscars history

Mahershala Ali accepts the award for best actor in a supporting role for Moonlight at the Oscars on Sunday, Feb. 26, 2017, at the Dolby Theatre in Los Angeles.

MOONLIGHT star Mahershala Ali makes Academy Award history.

NO ONE OFF LIMITS: Kimmel burns down the house at Oscars

Host Jimmy Kimmel speaks at the Oscars on Sunday, Feb. 26, 2017, at the Dolby Theatre in Los Angeles.

HOST delivers a torrent of abuse on Hollywood’s night of nights.

Mining homes dive: $600k homes sell for $120k-$300k

18 Yeates Street, Moranbah sold for $135,000 in December, after being repossessed by a bank. The owners bought for $545,000 in August, 2011.

The economy still has two speeds, but with a painful twist

Mackay's property market climbing like a Rocket Man

Renewed confidence in Mackay means more homes are being snapped up by those eager to plant their roots in the region.

There's movement in the real estate sector and it's all positive.

'Why we drove 800km to buy a treehouse with a disco ball'

The new owners have planned a few updates, but will stick with much of the original design.

A couple travelled almost 800km for the home of their dreams.

The trick homeowners are using to buy more properties

Chantelle Subritzky leaves her home each week for Airbnb guests.

Queenslanders are going down this path to help pay their mortgages

Stunning home blends South Pacific beauty with Orient style

Immaculate residence with two outdoor living areas

Ready to SELL your property?

Post Your Ad Here!